Marc Faber on The Recession in China

China is a country twice the population of US and Canada in terms of population. So you can have some sectors and some regions, like the US has California. Occasionally California is in a recession but New England is booming. Same can happen in China, some sectors are contracting, some provinces are growing.

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

The World needs less financial services graduates

Unemployment is high in both Europe and the U.S., particularly for young people. One reason for the high unemployment rate is that it is very difficult to find highly specialized workers for industry. Perhaps that's due to more university students studying non-user-friendly subjects, such as philosophy. The Western world is lacking in well-trained workers who can handle industrial machines that cost $10-20 million ($10-20M). But if I need a clerical assistant for financial services, I can find hundreds and hundreds of applicants.

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber leaning towards Shorting stocks

A lot of large caps stocks Mc Donald's MCD, Coca Cola KO, Walmart WMT, P&G PG most likely have peaked out. There are still stocks that show strength that could continue to appreciate. That momentum could bring a new high possibly around 1700. I wouldn't bet on it. If someone put a gun on my head and said you have to be long or short, I would take the short side.

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

The U.S Will Default

"For a while, yes, but at some point people will wake up and realize that the U.S. will default through a depreciating currency—in other words, through printing money—or by not paying the interest on the bonds. I don't think the U.S. will stop paying the interest, but printing more money will weaken the currency and produce higher inflation in consumer prices, asset prices and commodity prices. So being in U.S. government bonds will result in losses to investors through currency depreciation." - in The AUReport



Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

People With Financial Assets Are All Doomed

As Barron's notes in this recent interview, Marc Faber views the world with a skeptical eye, and never hesitates to speak his mind when things don't look quite right. In other words, he would be the first in a crowd to tell you the emperor has no clothes, and has done so early, often, and aptly in the case of numerous investment bubbles. With even the world's bankers now concerned at 'unsustainable bubbles', it is therefore unsurprising that in the discussion below, Faber explains, among other things, the fallacy of the Fed's help "the problem is the money doesn't flow into the system evenly, how with money-printing "the majority loses, and the minority wins," and how, thanks to the further misallocation of capital, "people with assets are all doomed, because prices are grossly inflated globally for stocks and bonds." Faber says he buys gold every month, adding that "I want to have some assets that aren't in the banking system. When the asset bubble bursts, financial assets will be particularly vulnerable."- in Zero Hedge


Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.